Visakha Container Gets $8 Mn Debt From IFC For Vizag Terminal

IFC has provided a debt of $8 Mn to Visakha Container Terminal Private Limited (VCTPL) for its project - Vizag Terminal.

Vizag Terminal is a project that is involved in expansion in cargo handling capacity at the already operational Visakha Container Terminal located at the Visakhapatnam (Vizag) port in Andhra Pradesh state. The total project cost is estimated at $23.3 mn.

Transaction Reference: IFC

VCTPL is a 74:26 joint venture between Indian-based United Liner Agencies Private Limited (ULA) and Dubai-based Dubai Ports World FZE (DPW).

ULA is owned by the Kotak family, who are the promoters of the J.M. Baxi group of companies in India. DPW is the marine terminal operators with 48 terminals and 13 new developments across 31 countries. The Emirate of Dubai owns 100% of DPW through its holding company, Dubai World.

VCTPL was awarded a 30-year BOT concession to operate the terminal in 2002 after a competitive bidding process. It commenced operations in June 2003. Since then, traffic has grown at around 20% per annum to the present monthly average of 8000 TEUs, aggregating 98,000 TEUs in FY2010.

Vizag Terminal is expected to upgrade existing port infrastructure, reduce turnaround time and costs and facilitate exports. As a result of this investment, VCTPL’s handling capacity will expand from 150,000 TEUs to 300,000 TEUs.

The bulk of VCT’s future traffic originates from Chhatisgarh, Orissa and Andhra Pradesh, two of which are Low Income States.

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